The housing market is about to take a hit as student loan payments restart
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The housing market is about to take a hit as student loan payments restart
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Re: The housing market is about to take a hit as student loan payments restart
#2> 58% of economists polled in a recent survey say the resumption of payments will have a significant impact on mortgage affordability.
A coin-flip of soft-scientists polled in a recent survey say...
Re: The housing market is about to take a hit as student loan payments restart
#3People paying off student loans probably can’t afford houses anyway different demographics.
Re: The housing market is about to take a hit as student loan payments restart
#4Good! House prices are too high, and people should pay back their loans! It's a win-win!
(And I say this as a homeowner.)
Re: The housing market is about to take a hit as student loan payments restart
#5People paying off student loans probably can’t afford houses anyway different demographics.
but what about the college wage premium?
Re: The housing market is about to take a hit as student loan payments restart
#6> 58% of economists polled in a recent survey say the resumption of payments will have a significant impact on mortgage affordability. A coin-flip of soft-scientists polled in a recent survey say...
As if what's going to happen depends on the ensemble average of predictors.
Tell me why the lone economist predicts that there will be (and there will) an economic crash not how many
Re: The housing market is about to take a hit as student loan payments restart
#7Re: The housing market is about to take a hit as student loan payments restart
#8Re: The housing market is about to take a hit as student loan payments restart
#9It’s so ridiculous that economists, policymakers and even the fed is so out of touch with the reality of the market. The housing market highs are a result of less supply and not high demand. 90% of mortgages are locked in under 3% rates which ensures the lack of supply will continue in this high interest market, and in some sense even make it worse. A very low percentage of people will be so stretched with student payments that they’d give up on homes. If anything all sectors except housing market will take a bigger hit as housing takes priority over everything else.
Re: The housing market is about to take a hit as student loan payments restart
#10The fundamentals of housing I think are still a ways away from a crash. There might be selective markets that cool off or drop. I'd also say Canada is closer to a crash than the US is.
But I wanted to mention 2 hacks for legally avoiding crippling student loan debt repayments, possibly forever.
1. Move overseas permanently. This requires you to be on an IDR (Income Driven Repayments) plan, which you have to apply for. I'm not an expert in this but I believe that public student debt will allow this but private student debt may not. Side note: never refinance your debt privately with the likes of SoFi. You lose a lot of the protections you might otherwise have.
How does this work? Through the Foreign Income Tax Credit ("FITC"). US citizens living overseas still have to file annual US tax returns, something only the citizens of the US and Eretria have to do. The FITC, if you claim it, exempts the first ~$110K of income from US taxes. Why does this matter? Because if your income is below that, your Adjusted Gross Income ("AGI") goes to $0 and your IDR payments also go to $0.
After living overseas for 20-25 years you can get your debt forgiven. This creates a taxable event for your loan balance but inflation will reduce the real value of that and you have 20-25 years to prepare by, for example, putting money away every month since you're not paying student loan interest over that entire period.
If you are a college graduate (which is likely given you have student loan debt but you may not have graduated) then you will be able to either get a work visa and eventual residency/citizenship in many other countries or you can apply directly for skilled migration.
For most developed countries you'll avoid the crippling cost of health insurance that plagues the US too; and
2. The less extreme option is to find the cheapest online community college in your state and enroll in enough credit hours in anything to qualify as a half-time student. This will probably cost you less than $1000/year. That's not nothing but it will pause repayments and stop interest accruing, so it's cheaper. Keep doing this forever.